Brazil's President Lula to discuss economy and security with Trump at White House

Daniel Bush,Washington correspondentand
Leandro Prazeres,BBC Brazil
News imageREUTERS/Lisi Niesner/File Photo Brazilian President Luiz Inacio Lula da Silva is at a mic, seen from the elbows pointing with his left hand and he appears to be talking. He has white hair and a short white beard. REUTERS/Lisi Niesner/File Photo

US President Donald Trump will host Brazilian President Luiz Inácio Lula da Silva at the White House on Thursday for talks on tariffs, other economic issues, and combatting organised crime.

The two leaders have had a strained relationship since Trump returned to office, and the visit will be closely watched for signs of a breakthrough in disputes over tariffs and other issues.

Last year, the US imposed a 40 percent tariff on Brazilian goods, in addition to a separate 10 percent tariff. Trump later lowered the rate, but the trade dispute had damaged relations between the US and South America's largest economy.

Trump also intervened in Brazilian politics last July when he wrote a letter to Lula asking that criminal charges be dropped against former Brazilian President Jair Bolsonaro.

A close Trump ally, the far-right Bolsonaro was convicted last November of leading an attempted coup and sentenced to 27 years in prison. Lawyers for Bolsonaro appealed the conviction.

Trump cited the Bolsonaro case as one factor in his decision to increase tariffs on Brazil.

The leaders held their first meeting of Trump's second term in Malaysia last year.

They also met briefly on the sidelines of the United Nations General Assembly in New York in September. Trump praised Lula in his UN speech, a sign the leaders were seeking to iron out their differences.

"He seemed like a very nice man," Trump said. "We had excellent chemistry."

Lula established himself as a popular left-wing figure while presiding over a period of economic growth in Brazil during his first two terms as president from 2003 to 2011. He returned to office after defeating Bolsonaro in the 2022 presidential election, and is running for another term later this year.

Trump and Lula are scheduled to hold a working meeting late Thursday morning at the White House.

Ahead of the visit, Brazilian Vice President Geraldo Alckmin said Lula would discuss a pact to combat organised crime, among other issues.

A White House official told BBC the leaders would discuss "economic and security matters of shared importance."

According to BBC News Brasil, it is still unknown whether all the issues on Brazil's economic team's radar will actually be addressed during the meeting. This decision will depend on the "temperature" the White House sets for the meeting, according to a source.

Critical minerals

One of the topics on the agenda of Brazilian negotiators is critical minerals - considered strategic for both countries.

"There is room for it in the areas of big tech, rare earths, and strategic minerals," said Alckmin when commenting on Lula's trip, according to the Brazilian newspaper Valor Econômico.

On one hand, Americans want easier access to mining projects in critical mineral deposits, especially rare earth minerals. On the other, the Brazilian government has been advocating for greater state control over these projects and that investments in the area include the processing of minerals - not just the export of raw materials.

Critical minerals, including rare earth elements, are necessary both in equipment used to generate and store clean energy, and in the electronics and military industries. Among them are lithium, cobalt, and niobium, which can be used to manufacture electric batteries, magnets for wind turbines, electronic chips, aeroplanes, missiles, and satellites.

In the second Trump administration, the US has aimed to reduce its dependence on China for critical minerals and rare earth elements. It is estimated that China holds around 60% of the known reserves of this material and is responsible for 90% of its refining.

But Brazil has emerged as a potential partner since the country has the second largest - only to China - known reserve of rare earth elements.

In recent months, the US has launched a series of initiatives to expand its access to critical mineral reserves, including established partnerships with other nations. Brazil, however, has been resisting such an agreement with the US, especially if it would require Brazil to give preference to exports to the US.

Tariffs

Despite Trump's easing of tariffs on a range of Brazilian products in recent months, Brazilian economic experts want to try to reduce or eliminate remaining tariffs on some of the country's US exports.

An estimate from Brazil's Ministry of Development, Industry, Trade and Services (MDIC) indicates that at least 29% of exports are subject to additional tariffs by the US government.

In April 2025, the US imposed a flat 10% tariff on every country in the world. In July, the Trump administration imposed an additional 40% tariff on various Brazilian products - seen at the time as a US response to the treatment of Bolsonaro. The episode was considered the peak of tensions, but the relationship between the two countries has since imporved.

In November, the Trump administration removed some of the tariffs on Brazilian products and in February, the US Supreme Court ruled some of Trump's tariffs illegal, benefitting countries like Brazil. Subsequently, the US implemented a flat 15% tariff on global imports to the country.

But Brazil still wants the US to reduce tariffs affecting key areas of Brazil's economy. Some data shows that Brazilian exports to the US in the first quarter of this year reached their lowest historical level since 1997. Exports totalled US$7.8 billion in the period, indicating an 18.7% decrease compared to the same quarter of 2025.